After three consecutive months of growth between February and May, the exports of manufacturing and industrial goods are set to continue on the upside.
In the first quarter, almost 25 percent of Macau’s firms who sell to foreign markets say they’re expecting a jump in sales in the next six months, double the previous quarter and a sign of a future boost in external trade.
According to official data published yesterday, 23.3 percent of industrial companies who export from Macau say they’re estimating a sales increase in the next six months, a more optimistic view than three months prior. In the last quarter of 2013, only 14.5 percent of firms were waiting for an improvement in their international arm.
In addition to the more positive outlook, the exporters’ sentiment is still far from that of a year ago. In the first quarter of 2013, 40 percent of industrial companies were expecting to increase sales. The purchasing manager’s survey also revealed that 1.2 percent of these exporters expect a large hike in sales, while 22.1 percent estimate a soft and moderate rise.
Companies in the red are also dwindling. In March, 14.6 percent of industrial and manufacturing exporters in Macau admitted that they are facing a sales decrease for the next semester. In the last quarter of 2013, the companies with similar outlook totalled 19.4 percent and a year ago they surpassed a third (31.6 percent). Almost 3 percent (2.8 percent) of exporters expect a sharp decline in business.
No pill for jobs
The survey’s results are an indication that exports from Macau will probably increase in the coming months as more companies are expecting a hike in sales than those who are not. In the first quarter, for each exporter with a negative outlook, almost two had a sunny outlook. Exports of industrial goods have risen for three consecutive months already. Between February and May, sales to foreign markets increased 60 percent.
Mainland China and South East Asia were the best performing markets for Macau’s exporters, the survey said, followed by Hong Kong and Japan. Latin America, on the other hand, was the underperformer of the quarter. By product, pharmaceuticals led the way, with clothing and garments next in sales ranking.
A lack of human resources was the main complaint by Macau’s exporters, affecting 62 percent of those polled. The number of workers decreased 2.7 percent quarter-on-quarter and 5.7 percent year-on-year. The pharmaceutical sector, despite having the most favourable outlook, was also the one suffering most from a lack of workers (86 percent of managers say they need more employees to cope with increasing sales). High wages, expensive raw materials and growing competition were also major concerns for Macau’s exporters.
